San Gold Corporation announced that recent drilling and ongoing development has confirmed and expanded on a new and parallel mining horizon located immediately to the north of the Rice Lake Mine. This horizon is fully accessible from current and historic Rice Lake Mine workings with present drilling and development taking place from 26 Level (1,250 metres below surface). Recent drilling and development has extended the previously discovered 710 and 711 veins over an additional 100 metres along strike within this new horizon, bringing the combined strike length of these veins to more than 500 metres.

Hole 615-14-044, drilled down dip of the 710 zone, returned 10.4 metres of core length grading 25.7 grams gold per tonne. Additional highlights include hole 615-14-021 which returned multiple intersections including 52.3 metres grading 5.4 grams gold per tonne and hole 615-14-010 which returned 6.4 metres grading 18.5 grams gold per tonne. The 710 and 711 veins occur within a mafic unit located 100 to 200 metres north of and in the immediate hanging wall of the Rice Lake mine and are currently being accessed and developed from 26 Level, which is the main tramming level and is planned to be an integral part of San Gold's mining infrastructure going forward.

The pattern of veins emerging within this new mine horizon is very similar in terms of size, geometry and grade to the original Rice Lake Mine. Historically, exploration did not occur outside of the Rice Lake Mine unit until the discovery of the 007 and Hinge zones in recent years. This most recent discovery was made with exploration focussed in the area between the Rice Lake Mine unit and the Shoreline Basalt, which is host to the 007 and Hinge zones, where very little drill information existed.

The initial discovery and subsequent definition drilling and development has so far been carried from 26 Level and has now delineated the 710 and 711 gold mineralization approximately 150 metres vertically. Additional drilling and development recently commenced from mining levels and incline/decline access above and below 26 Level.